Market Analysis: Outlining the Process and Exploring Its Value to an Organisation

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Market Analysis: Outlining the Process and Exploring its Value to an Organisation. 29/02/2012

Contents
1. Introduction – 3
2. The Marketing Environment – 3-4
3. Macro Analysis – 4
4.1 Political factors – 4
4.2 Economic factors – 4
4.3 Socio-cultural factors - 5
4.4 Technological factors – 5
4.5 Legal factors – 5
4.6 Environmental factors – 5
4. Micro Analysis – 5-7
5. TOWS Analysis – 7
6.7 Opportunities and Threats – 7
6.8 Strengths and Weaknesses – 7-8
6. Benefits of Marketing Analysis – 8
7.9 Short term benefits - 8
7.10 Medium term benefits - 8
7.11 Long term benefits -- 8
7. Challenges and Difficulties in Market Analysis – 8-9 8. References - 9

1. Introduction
In order to be successful when marketing, companies should undergo a planning process, enabling to create a marketing audit which is one of the most valuable tools in marketing. A marketing audit is defined as “a systematic process for assessing marketing opportunities, helping organisations to stay in touch with marketplace trends and to keep abreast of customer needs” (Dibb, 2002). Marketing audits allow companies to identify its own strengths and weakness in relation with their external opportunities and threats and understand how they relate to the environment in which they operate. For a successful marketing audit, 4 stages need to be assessed and completed; Macro analysis, micro analysis, TOWS/SWOT analysis and identification of key or critical success factors.

2. The Marketing Environment
The factors and forces that affect a company’s capability to operate effectively in providing products and services to its customers is known as the Marketing Environment (Jobber, 2007). It is important for companies to take into consideration every aspect of the marketing environment as each element could possibly directly affect them. This means companies such as Pedigree pet food should always be analysing these factors to be able to ensure they remain within the market.

3. Macro Analysis
The macro-environment looks at the bigger issues which affect all markets, such as legal and environmental factors. Companies have no influence what so ever over any of the elements within the macro environment. These are known as P.E.S.T.L.E. factors; P.E.S.T.L.E. is the political, economic, socio-cultural, technological, legal and environmental factors which directly affect companies. 3.1 Political factors

There are many regulations Pedigree need to stay up to date with such as the statute Feeding Stuffs Regulations 2005. This statute states that all pet foods must be clearly and truthfully labelled, giving ingredients, percentages (of oils, fats, fibres etc.) direction and description of the product, best before dates and other such things you expect to find on human food packaging. The EU legislation forces manufacturers, including Pedigree, to disclose the content of their pet food. This will adversely affect the attractiveness of certain ingredients. If pedigree weren’t to comply with this regulation they could face a fine of £5000. 3.2 Economic factors

The recent recession will have had a huge impact on Pedigree as hundreds of people lost their jobs making it a huge struggle for many people to cope with prices of pet foods and vets bills, forcing them to abandon/neglect their pets. As different animal charities have stated over 50% more animals have become stray and abandoned during 2011 compared to the same time frame in 2010 and at least 20 dogs are being put down by local authorities each day. This will have a large impact on Pedigree as their customers are shown to be just no longer purchasing pet food or trying to find cheaper alternatives. 3.3 Sociocultural factors

Many different factors have affected the macro environment within the pet food sector over the last few years; by looking at Pedigree pet foods in particular we can...
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